Over 50% of tech companies replaced their CMO in last 24 months

A new IDC study finds that tech marketing budgets will rebound in 2014. According to the analyst firm, marketing budgets among the 101 technology companies surveyed will increase by an average of 3.5 percent in 2014. Those same companies expect a revenue increase of 3.7 percent for the same period.

Despite this momentum, the CMO role remains very fluid as marketing organisations attempt to reinvent their capabilities and effectiveness in a new era of marketing.
[caption id=“attachment_75583” align=“alignleft” width=“300”]  Image: Thinkstock[/caption]

In a related study, IDC finds that 51 percent of tech CMO’s have been in their position for fewer than two years.

Two-thirds of the companies surveyed will increase their marketing budgets in 2014 while only 20 percent of the companies will decrease their marketing budgets with the remainder indicating no change in budget levels.

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Notably, companies with a high percentage of 3rd Platform products (cloud, social, mobile and Big Data and analytics) will receive marketing budget increases upwards of five times that of the average tech company, increasing their budgets 10-20 percent year over year.

“For the first time in eight years, IDC is seeing that marketing budgets are increasing at about the same rate as revenues. This is positive news for tech marketers and also a clear indication that the C-suite is ready to put additional marketing investment up against more promising business prospects,” said Sam Melnick, Senior Research Analyst, IDC CMO Advisory Service.

“However, both the CMO and CEO must understand that momentum is being driven by success in 3rd Platform solution areas. To continue this growth, executives must continue to invest to be competitive in these high-upside segments.”

“We examined 152 tech companies with a current CMO in place and found that 77, just over half, have replaced their CMO in the last 24 months - an astonishing rate of change. CMOs must own the digital disruption of buyer experience for their companies. Those CMOs able to rise to the challenge will be provided more resources and given more power. The unprepared will be replaced,” said Kathleen Schaub, Vice President, IDC CMO Advisory Service.

“However, tech CEOs must also wake up to the impact marketing now wields over revenue and reputation. It’s their job to pick the right person for today’s challenges. To get CMO selection right means the CEO needs to understand and get closer to marketing.”